Givaudan: Jefferies still a seller
(CercleFinance.com) - Jefferies confirms its "underperform" rating on Givaudan shares, along with its target price of 2,500 CHF, despite increasing its 2023 EBITDA estimate by 2%, ahead of the flavours and fragrances group's Q3 trading update.
The broker says "We remain cautious with an elevated valuation supported by cost driven earnings progress, and expectations that volumes have bottomed vs. a risk of Q4 seasonal destocking".
"From here, greater evidence around structural growth dynamics are needed, likely a focus of its investor event in Singapore this week", it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker says "We remain cautious with an elevated valuation supported by cost driven earnings progress, and expectations that volumes have bottomed vs. a risk of Q4 seasonal destocking".
"From here, greater evidence around structural growth dynamics are needed, likely a focus of its investor event in Singapore this week", it adds.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.